Student loan payments: get advice and actual numbers here

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Anonymous User
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Re: Student loan payments: get advice and actual numbers here

Postby Anonymous User » Thu Oct 12, 2017 11:29 am

bk1 wrote:
Anonymous User wrote:Has anyone's FRB modification been finalized? I imagine they are inundated with requests, but I haven't heard much of anything since applying weeks ago.

I was told it would take about a month to process.

Damn. I guess I understand and I suppose there isn't much urgency on their end to receive less interest.

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hailcaesar34
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Re: Student loan payments: get advice and actual numbers here

Postby hailcaesar34 » Tue Oct 17, 2017 9:40 am

Is PAYE just TCR for everyone starting out to pay loans.

My debt is 130k and I'm only making around 52k right now but should get a decent raise in 6 months.

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Nebby
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Re: Student loan payments: get advice and actual numbers here

Postby Nebby » Tue Oct 17, 2017 10:24 am

hailcaesar34 wrote:Is PAYE just TCR for everyone starting out to pay loans.

My debt is 130k and I'm only making around 52k right now but should get a decent raise in 6 months.

In your situation, yes.

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hailcaesar34
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Re: Student loan payments: get advice and actual numbers here

Postby hailcaesar34 » Tue Oct 17, 2017 10:25 am

Nebby wrote:
hailcaesar34 wrote:Is PAYE just TCR for everyone starting out to pay loans.

My debt is 130k and I'm only making around 52k right now but should get a decent raise in 6 months.

In your situation, yes.

Ty

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Re: Student loan payments: get advice and actual numbers here

Postby Anonymous User » Wed Oct 18, 2017 8:52 am

JenDarby wrote:
Danger Zone wrote:
Mlk&Ckies wrote:I might be shooting in the dark here but my guess is whichever is the lowest payment

Yep

to add to these very helpful responses (<3 DZ and mlk) it's likely going to be PAYE or REPAYE which are 10% of your discretionary income versus 15% on IBR, but could be IBR based on the 25 yr forgiveness horizon as opposed to 20 yr

so you want to get on the income based repayment plan that has the lowest payment

if you were going to be on it longer term then PAYE or REPAYE are the clear winners, with some more nuanced factors going into play between the two. but for a few months, just pick the one with lowest payments

be sure not to submit current pay stubs/offer letter (Great Lakes actually requested these from me to try to set my payments higher), but rather submit your last years W-2 which should show your lowest income to calculate payments, which should be next to nothing

when it comes down to it though, the liquidity requirement is not a SET IN STONE 15%. plus it's a function of your outstanding loan balance which higher payments would lower. so really this entire thing is pretty moot over a couple months



Looking into getting on PAYE right now for the short term until I refi. When my loan servicer asks if "my income has changed significantly since my last filed tax return" is it legitimate to say no as you suggested and file using last year's W-2?

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Re: Student loan payments: get advice and actual numbers here

Postby Nebby » Wed Oct 18, 2017 9:23 am

Anonymous User wrote:
JenDarby wrote:
Danger Zone wrote:
Mlk&Ckies wrote:I might be shooting in the dark here but my guess is whichever is the lowest payment

Yep

to add to these very helpful responses (<3 DZ and mlk) it's likely going to be PAYE or REPAYE which are 10% of your discretionary income versus 15% on IBR, but could be IBR based on the 25 yr forgiveness horizon as opposed to 20 yr

so you want to get on the income based repayment plan that has the lowest payment

if you were going to be on it longer term then PAYE or REPAYE are the clear winners, with some more nuanced factors going into play between the two. but for a few months, just pick the one with lowest payments

be sure not to submit current pay stubs/offer letter (Great Lakes actually requested these from me to try to set my payments higher), but rather submit your last years W-2 which should show your lowest income to calculate payments, which should be next to nothing

when it comes down to it though, the liquidity requirement is not a SET IN STONE 15%. plus it's a function of your outstanding loan balance which higher payments would lower. so really this entire thing is pretty moot over a couple months



Looking into getting on PAYE right now for the short term until I refi. When my loan servicer asks if "my income has changed significantly since my last filed tax return" is it legitimate to say no as you suggested and file using last year's W-2?

Yes. But you file using last year's tax return, not W2

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Re: Student loan payments: get advice and actual numbers here

Postby Anonymous User » Wed Oct 18, 2017 5:34 pm

Anonymous User wrote:
bk1 wrote:
Anonymous User wrote:Has anyone's FRB modification been finalized? I imagine they are inundated with requests, but I haven't heard much of anything since applying weeks ago.

I was told it would take about a month to process.

Damn. I guess I understand and I suppose there isn't much urgency on their end to receive less interest.

Figured I would check in for others - I finalized my modification early this week so it was ~ 3 weeks start to finish. Also they back date your new rate starting on your last payment date.

ArizonaCactus123
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Re: Student loan payments: get advice and actual numbers here

Postby ArizonaCactus123 » Thu Oct 19, 2017 1:38 pm

For recent grads, (biglaw and elsewhere) or people who know - how large (roughly) are your typical monthly payments after graduating?

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Danger Zone
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Re: Student loan payments: get advice and actual numbers here

Postby Danger Zone » Thu Oct 19, 2017 1:41 pm

ArizonaCactus123 wrote:For recent grads, (biglaw and elsewhere) or people who know - how large (roughly) are your typical monthly payments after graduating?

Depends entirely on your debt and (if you're entering into an income driven repayment plan) your income. Could be $0 or could be $4,000 or higher.

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JenDarby
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Re: Student loan payments: get advice and actual numbers here

Postby JenDarby » Thu Oct 19, 2017 1:44 pm

Danger Zone wrote:
ArizonaCactus123 wrote:For recent grads, (biglaw and elsewhere) or people who know - how large (roughly) are your typical monthly payments after graduating?

Depends entirely on your debt and (if you're entering into an income driven repayment plan) your income. Could be $0 or could be $4,000 or higher.

start at page 1 of this thread, it was actually the entire point

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Re: Student loan payments: get advice and actual numbers here

Postby Anonymous User » Thu Oct 19, 2017 1:45 pm

I have about $90k in loans. Post tax, rent, and car payments have about $49k leftover in take home cash. Is $2k a month for loan payment a good idea? I was thinking I would put $24k into my loans per year, $10k into savings, and the rest into other living expenses. Should I be doing something else with my money? I don't know jack about this stuff.

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Re: Student loan payments: get advice and actual numbers here

Postby SmokeytheBear » Thu Oct 19, 2017 1:52 pm

Anonymous User wrote:I have about $90k in loans. Post tax, rent, and car payments have about $49k leftover in take home cash. Is $2k a month for loan payment a good idea? I was thinking I would put $24k into my loans per year, $10k into savings, and the rest into other living expenses. Should I be doing something else with my money? I don't know jack about this stuff.


What is the interest rate on those loans?

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JenDarby
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Re: Student loan payments: get advice and actual numbers here

Postby JenDarby » Thu Oct 19, 2017 1:56 pm

Anonymous User wrote:I have about $90k in loans. Post tax, rent, and car payments have about $49k leftover in take home cash. Is $2k a month for loan payment a good idea? I was thinking I would put $24k into my loans per year, $10k into savings, and the rest into other living expenses. Should I be doing something else with my money? I don't know jack about this stuff.

If you have an available 401k option then you should be putting that to use for the tax advantaged savings, especially if you have any employer match (similarly IRA contributions if you are eligible or HSA if your work offers). Definitely put money aside into a high interest savings account (Ally is typically the best as far as rates, currently at 1.20%) as an emergency fund, because you never know.

Depending on your current job / salary / future employment plans you want to seriously consider refinancing that debt down to a lower rate with say FRB (if you're in a qualifying area, have a high salary and good credit score, their rates are fixed and by far the lowest, currently 1.95-2.96 depending if it's a 5/7/10/15 yr term) or another reputable lender like sofi, commonbond or earnest.

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Re: Student loan payments: get advice and actual numbers here

Postby Anonymous User » Thu Oct 19, 2017 2:00 pm

SmokeytheBear wrote:
Anonymous User wrote:I have about $90k in loans. Post tax, rent, and car payments have about $49k leftover in take home cash. Is $2k a month for loan payment a good idea? I was thinking I would put $24k into my loans per year, $10k into savings, and the rest into other living expenses. Should I be doing something else with my money? I don't know jack about this stuff.


What is the interest rate on those loans?

I think $10k of it is at about 4.5% to 5.6%, 15k at 6%, the rest 7%.

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JenDarby
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Re: Student loan payments: get advice and actual numbers here

Postby JenDarby » Thu Oct 19, 2017 2:02 pm

SmokeytheBear wrote:
Anonymous User wrote:I have about $90k in loans. Post tax, rent, and car payments have about $49k leftover in take home cash. Is $2k a month for loan payment a good idea? I was thinking I would put $24k into my loans per year, $10k into savings, and the rest into other living expenses. Should I be doing something else with my money? I don't know jack about this stuff.


What is the interest rate on those loans?

You're infringing on used car salesmen territory. : )

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SmokeytheBear
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Re: Student loan payments: get advice and actual numbers here

Postby SmokeytheBear » Thu Oct 19, 2017 2:11 pm

JenDarby wrote:
SmokeytheBear wrote:
Anonymous User wrote:I have about $90k in loans. Post tax, rent, and car payments have about $49k leftover in take home cash. Is $2k a month for loan payment a good idea? I was thinking I would put $24k into my loans per year, $10k into savings, and the rest into other living expenses. Should I be doing something else with my money? I don't know jack about this stuff.


What is the interest rate on those loans?

You're infringing on used car salesmen territory. : )


Bill Paxton in True Lies has always been a hero of mine.

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SmokeytheBear
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Re: Student loan payments: get advice and actual numbers here

Postby SmokeytheBear » Thu Oct 19, 2017 2:13 pm

Anonymous User wrote:
SmokeytheBear wrote:
Anonymous User wrote:I have about $90k in loans. Post tax, rent, and car payments have about $49k leftover in take home cash. Is $2k a month for loan payment a good idea? I was thinking I would put $24k into my loans per year, $10k into savings, and the rest into other living expenses. Should I be doing something else with my money? I don't know jack about this stuff.


What is the interest rate on those loans?

I think $10k of it is at about 4.5% to 5.6%, 15k at 6%, the rest 7%.


It depends on your desire to payoff your loans quickly and your rate of the return in the market, but I personally would at the very least pay down the higher rate loans--7% is quite high, if not refinance to a lower rate. You can get a lower rate at First Republic (if you are in a coverage area) or SoFi or Common Bond.

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Danger Zone
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Re: Student loan payments: get advice and actual numbers here

Postby Danger Zone » Thu Oct 19, 2017 2:25 pm

Hey has anyone suggested FRB yet? :wink:

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JenDarby
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Re: Student loan payments: get advice and actual numbers here

Postby JenDarby » Thu Oct 19, 2017 2:27 pm

Danger Zone wrote:Hey has anyone suggested FRB yet? :wink:

we probably need to set up some sort of rotation or referral rules

and of course those who just refinanced are barred from participating for 6 months

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SmokeytheBear
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Re: Student loan payments: get advice and actual numbers here

Postby SmokeytheBear » Thu Oct 19, 2017 2:30 pm

JenDarby wrote:
Danger Zone wrote:Hey has anyone suggested FRB yet? :wink:

we probably need to set up some sort of rotation or referral rules

and of course those who just refinanced are barred from participating for 6 months


An FRB referral cartel?

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Danger Zone
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Re: Student loan payments: get advice and actual numbers here

Postby Danger Zone » Thu Oct 19, 2017 2:31 pm

I'm down for colluding

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SmokeytheBear
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Re: Student loan payments: get advice and actual numbers here

Postby SmokeytheBear » Thu Oct 19, 2017 2:37 pm

Danger Zone wrote:I'm down for colluding


I also would be down.

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Re: Student loan payments: get advice and actual numbers here

Postby Anonymous User » Thu Oct 19, 2017 10:36 pm

Payments start soon

Around $2,200 a month. I calculated that if I double it I can payoff in 5 years. Kill me

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JenDarby
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Re: Student loan payments: get advice and actual numbers here

Postby JenDarby » Thu Oct 19, 2017 10:42 pm

Anonymous User wrote:Payments start soon

Around $2,200 a month. I calculated that if I double it I can payoff in 5 years. Kill me

Ok you must refinance. Contact me for a reference from the FRB mafia. Jk, but really if you are going to rapidly pay off debt like that you may as go with a no cost refinance and cut your rate from say an average of 5-6% to 1.95-2.95%. If you are in a qualifying area (palo alto, SF, SB, Palm beach, NYC) the rates will be fixed at what I said in my prior sentence. You will also need SOME liquidity (cash) and a high paying job for FRB. Alternatively Earnest, commonbond and sofi also offer good rates. But you may as well cut your interest and give yourself an option to pay down slower or pay off at your current rate and save on interest.

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Danger Zone
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Re: Student loan payments: get advice and actual numbers here

Postby Danger Zone » Thu Oct 19, 2017 11:22 pm

I had a good experience with DRB / Laurel Road (new name) as well before I refi-d to FRB.




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